March 26, 2012
TO THE ADMINISTRATOR ADDRESSED:
1. American Recovery and Reinvestment Act of 2009 (ARRA) Section 1512
Quarterly Reports Due April 5, 2012
2. Central Contractor Registration Annual Renewal
3. Enforcement Actions
4. Resources and Assistance
The purpose of this letter is to inform local educational agencies (LEAs) of the deadline for ARRA Section 1512 Quarterly Reports for the current reporting period and to provide additional guidance regarding ARRA reporting requirements.
1. ARRA Section 1512 Quarterly Reports Due April 5, 2012
ARRA Section 1512 Quarterly Reports for the January 1 through March 31, 2012, reporting period are due from LEAs receiving ARRA funds distributed by the Texas Education Agency (TEA) for the following grant programs:
- Education Jobs Fund (Ed Jobs)
- ARRA Title I, School Improvement Grant (SIG) (Texas Title I Priority Schools) as applicable if the grantee’s Notice of Grant Award (NOGA) identifies ARRA SIG funding
The reports must be submitted to the TEA by 5:00 p.m. Central Time, April 5, 2012. TEA will open the Expenditure Reporting (ER) system for ARRA Section 1512 Quarterly Reports on Monday, April 2, 2012. The ER system will close at 5:00 p.m. Central Time, April 5, 2012.
All LEAs with an ARRA Notice of Grant Award (NOGA) for the programs listed above must meet the April 5, 2012, quarterly reporting deadline for each NOGA. An ARRA Section 1512 Quarterly Report must be submitted regardless of whether: (1) all of the grant funds have been drawn down, (2) a final expenditure report has been submitted, (3) no grant funds have been expended, or (4) there has been no grant activity during the quarter.
Most LEAs received their 2010–2012 Ed Jobs NOGA from TEA in May 2011. Section 101 of the Ed Jobs statute, Public Law (P.L.) 111-226, requires that the fund be administered under the terms and conditions of Title XIV and Title XV of ARRA. Therefore, LEAs must report quarterly on the use of Ed Jobs funds as is required for all ARRA grants pursuant to the requirements in Section 1512 of ARRA. For additional information on federal requirements for the use of Ed Jobs funds, please refer to Attachment A.
Except for the programs listed above, all other ARRA grants have ended. No additional ARRA reporting is necessary for the grants that have ended. TEA appreciates the cooperation of all of the LEAs that have submitted their final ARRA reports for these grants.
For some LEAs reporting only on Ed Jobs funding, the ARRA Section 1512 Quarterly Report for the quarter ending March 31, 2012, may be the final report. For grantees reporting on ARRA Title I, SIG (Texas Title I Priority Schools) grants, the quarterly report cannot be a final report.
The ARRA Section 1512 Report includes a field in which LEAs can indicate that their reports are final. A project is considered “final” for ARRA reporting purposes only when all four of the following requirements are met:
- There are no further ARRA expenditures for the associated award.
- All expended ARRA funds associated with the award have been invoiced and received.
- No additional jobs will be funded.
- The project status is complete per TEA requirements and/or performance measures.
Additionally, in instances in which the final subrecipient expenditures listed on the report are less than the total award amount, the LEA must explain why the final amount in the “Total Expended Amount” field does not equal the total award amount.
Provided that an LEA meets all of the above requirements for a particular grant, this final report will be the last ARRA Section 1512 Quarterly Report the LEA will be required to submit for that grant. Please note that if there are mistakes in the final report, the LEA will be required to correct the final report during the subsequent ARRA Section 1512 continuous corrections period.
Expenditure Reimbursement Requests
As described above, the ER system will open for ARRA Section 1512 quarterly reporting on Monday, April 2, 2012. Please plan accordingly in order to meet the quarterly reporting deadline.
LEAs should note that expenditure reimbursements are only captured in the ARRA Section 1512 Quarterly Report when they have been completely processed in ER and paid to the grantee. Reimbursement requests submitted within the last few days of the quarter may not be reflected in the report.
Reporting ARRA–Funded Jobs
As in previous quarters, LEAs must calculate and report the total number of jobs that were created or retained and funded with Ed Jobs or ARRA SIG grants as full-time equivalent (FTE) jobs. Federal Office of Management and Budget (OMB) guidance defines a funded job “as one in which the wages or salaries are either paid for or will be reimbursed” with ARRA funding.
LEAs that reimbursed payroll costs for hours worked before December 31, 2011, but were not able to report the FTEs in the quarterly reports that were due January 5, 2012, should include these FTEs in the quarterly reports for the quarter ending March 31, 2012, in accordance with US Department of Education (USDE)Clarifying Guidance released on August 26, 2010, and revised on September 30, 2010.
Question 5 of the USDE Clarifying Guidance and its corresponding answer states:
How should FTEs be reported when funds are expended in one quarter to cover costs incurred in previous quarters?
The OMB guidance released December 18, 2009, defines a funded job as one in which the wages or salaries are either paid for or will be reimbursed with Recovery Act funding. A job that is paid initially with non–Recovery Act dollars may be reported as created or retained so long as such dollars eventually will be reimbursed with Recovery Act funds for the jobs being reported.
To the extent possible, recipients should follow this guidance and report a job in the quarter in which it is worked. However, there may be circumstances in which a job cannot be reported in the quarter in which it is worked. A situation like this might occur if a recipient identifies the positions to be paid with ARRA funds after the end of a quarter or if the recipient uses the ARRA funds for pre-award costs that were not captured in prior quarter reporting. If this situation arises, the job should be reported in the quarter in which Recovery Act funds are expended to pay for the job. Recipients should be consistent in their application of reporting jobs either in the quarter in which the job is worked or in the quarter in which ARRA funds are expended to pay for the job.
OMB and USDE guidance cited above, along with other Resources for LEAs on ARRA Section 1512 reporting, are available on TEA’s website at http://www.tea.state.tx.us/
2. Central Contractor Registration (CCR) Annual Renewal
The ARRA Section 1512 Quarterly Reports include a field for the CCR expiration date. LEAs that are ARRA grantees are required to register with CCR and receive a Commercial and Government Entity (CAGE) code.
ARRA grantees register with CCR only once, but they must renew and revalidate their registration at least every 12 months to ensure that CCR is up to date and corresponds to changes that may have been made to the Data Universal Numbering System (DUNS) and Internal Revenue Service (IRS) information.
If an LEA does not renew its CCR registration, the registration will expire. Failure to renew an expired CCR registration may impair an LEA’s ability to draw down ARRA grant funds in ER. Therefore, TEA strongly suggests that LEAs renew their CCR registration prior to the expiration date. Upon receiving the new expiration date from the CCR system, please remember to update that information in the ARRA Section 1512 Quarterly Reports through TEA’s ER system, as these two systems are not connected and the update will not happen automatically. LEAs may only update their CCR information in ER when ER is open following a reporting quarter or during the continuous corrections period following a reporting quarter. Information on CCR, including registration renewal, is available online at https://www.bpn.gov/ccr/.
TEA will continue to monitor CCR expiration dates through the ARRA Section 1512 Quarterly Reports. If an LEA has renewed its CCR registration through the CCR system and has updated the new number in ER prior to receiving a notice from TEA requesting CCR renewal, the LEA should disregard the notice.
3. Enforcement Actions
TEA will continue to monitor ARRA grantees’ compliance with ARRA Section 1512 quarterly reporting requirements and annual renewal of CCR registration.
Pursuant to the provisions of the Code of Federal Regulations (CFR) Title 34, §80.43 and §74.62, if a grantee materially fails to comply with any term of an award, whether stated in a federal statute or regulation, an assurance in a grant application, or elsewhere, TEA may take one or more of the following enforcement actions as appropriate in the circumstances:
- Temporarily withhold cash payments pending correction of the deficiency, or more severe enforcement action
- Disallow all or part of the cost of an activity or action that is not in compliance
- Wholly or partly suspend or terminate the current award
- Withhold further awards for the program
- Take other remedies that may be legally available
4. Resources and Assistance
For additional assistance with ARRA Section 1512 quarterly reporting requirements or individual ARRA grants, please contact the following:
ARRA Section 1512 Resource
TEA guidance on ARRA Quarterly Reporting is available on TEA’s website at http://www.tea.state.tx.us/index4.aspx?id=7860&menu_id=934&menu_id2=941.
ARRA Section 1512 reporting information is announced on TEA’s website at Recent News and Announcements (http://www.tea.state.tx.us/index2.aspx?id=
4570&menu_id=934&menu_id2=941) and through the ARRA Stimulus listserv. LEAs can join the ARRA Stimulus listserv at http://miller.tea.state.tx.us/cgi-bin/
Thank you for your attention to this important matter.
Nora Ibáñez Hancock, EdD
Office for Grants and Fiscal Compliance